ABSTRACT
This chapter discusses the economic and military potential of Austria. The population was mainly rural, with about a third gaining its livelihood from the primary sector. Agricultural production varied from relatively modern and productive, to backward, to primitive. The Habsburgs pursued a rigorous Mercantilist policy which aimed to keep out foreign goods and create a self-sufficient empire. There was a common customs boundary to the Empire, but also some internal barriers. The Revolutionary and Napoleonic wars had a deleterious effect on the economy, particularly illustrated by the inflation which hit the paper money issued to meet the wars' needs. The strength of the army varied between 250,000 and 425,000 men during the Napoleonic period. The officers were drawn from the nobility and gentry; the rank and file were long-service volunteers and pressed men. There was a short-lived experiment in the creation of a militia in 1809.
